AmEx Hikes Dividend; Stock Can Take Charge

American Express investors should benefit from a favorable court ruling, dividend boost and stock buyback.

By

Johanna Bennett

Sept. 27, 2016 5:23 p.m. ET

A big court ruling, a dividend hike, and a new share buyback plan are giving American Express investors reasons to think better times are in the cards.

A federal appeals court on Monday cleared the way for American Express (ticker: AXP) to prevent merchants that accept its cards from steering customers toward lower-cost cards from other issuers. The ruling overturned a lower court decision issued last year that had banned AmEx from taking such action. If the government doesn’t appeal, the decision marks a win for AmEx as it...